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NEW YORK (TheStreet) -- Next week is a big week for earnings, especially in the retail sector, Jim Cramer said on Mad Money Friday. With overall market negativity continuing, that means there are a lot of opportunities being created.
For Tuesday Cramer said he'd be a buyer of Home Depot (HD), TJX Stores (TJX) and Dick's Sporting Goods (DKS) when they report. He even expects a bounce from Staples (SPLS), a stock he's disliked forever. However, the most important earnings of the quarter will come from Salesforce.com (CRM), Cramer said. If that stock does well and rallies, then other momentum names will likely follow.
Finally, on Friday, Foot Locker (FL) closes out the week. Cramer said this stock is already at its 52-week high, but he'd still pull the trigger if Dick's reports a strong number on Tuesday.
For "Speculation Friday," Cramer said investors who can't wait for the upcoming Alibaba initial public offering should consider another Chinese ecommerce player that's growing like a week, VipShop Holdings (VIPS).
Cramer said VipShop is fast on its way to becoming to China's largest online discount retailer. The company employs a lucrative flash sale and group buying model and, thanks to the fact that VipShop buys most of its items on consignment, the company holds almost no inventory.
If VipShop were in the U.S., Cramer said, the company would have tons of bricks-and-mortar competition. Not so in China, however, where the company stands alone.
VipShop last reported a 17-cents-a-share earnings beat on a staggering 126% rise in year-over-year revenue. The company now gets 36% of sales from mobile devices and it has an excellent relationship with its vendors that help it have very lucrative gross margins.
Shares of VipShop are up 91% so far this year, but the company still only trades at 36 times earnings with a 58% growth rate. Cramer reminded viewers that VipShop is a Chinese Internet stock, which makes it highly speculative. But its continued growth means that for speculation it's certainly worth a look.
Driving With Avis
What the heck is up with Avis Budget Group (CAR), a stock is already up 36% so far this year? Is the rental car business really that good? Cramer said it is.
Shares of Avis are just off their 52-week highs because the company consistently exceeds on its promises, said Cramer. Since 96% of all airport car rentals are now controlled by just three companies, those promises are likely to get even better going forward.
As the economy heats up, business should continue to improve for the car rental companies, Cramer said, and that means that before long prices should begin to rise, which will only add to Avis' great bottom line. The company is also benefiting from its acquisition of ZipCar, which continues to see synergies.
Cramer said Avis is also growing in Europe after acquiring its subsidiary there, and with a new credit upgrade the company should be able to refinance a ton of high interest debt and make its balance sheet even stronger.
Executive Decision: Nick DeBenedictis
For his "Executive Decision" segment, Cramer spoke with Nick DeBenedictis, chairman, president and CEO of Aqua America (WTR), the water supplier that just posted a 1-cent-a-share earnings beat an offers a 2.4% dividend yield.
DeBenedictis said that after 20 years, Aqua America is now in a position to offer shareholders both growth and a solid dividend. He explained that throughout much of the last decade his company has been buying up water systems around the country as electric utilities exited the water business. Then the company pruned the ancillary geographies and beefed up assets in places like Texas and Ohio, which are now allowing it to post solid results.
When asked how an Aqua America takeover typically works, DeBenedictis said the first priority is to bring quality and safety up to par. In many systems the company purchases the water is rusty, he explained, but after it invests and fixes them, quality is among the best you'll find anywhere.
At just 1 cent a gallon, DeBenedictis said Aqua America's water rivals that of any bottled water, which must meet the same standards.
Cramer called Aqua America a solid growth company that pays well and he remains a fan.
Cramer was bearish on Exelixis (EXEL).
No Huddle Offense
In his "No Huddle Offense" segment, Cramer told viewers that retail turnarounds are almost impossible to pull off, which is what makes the turn at J.C. Penney (JCP) so amazing.
Comparable store sales were down 30% just over a year ago, when former CEO Ron Johnson was ousted by the company. But since then its former and now current CEO, Mike Ullman, has pulled off the impossible, delivering a sting 6% increase in same-store sales with promises of many more to come.
How did Ullman do it? First, he raised cash to combat the skeptics. Next, he cleared out the old merchandise that wasn't resonating with shoppers while boosting its private label merchandise to further boost cash flows. All of that paid off, with shoppers now returning to the reinvigorated chain.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt